Regular Session 2015-2016 House Bill 2326 P.N. 3823

PRINTER'S NO. 3823

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2326

Session of

2015

INTRODUCED BY KAUFER, DRISCOLL, HARHART, BOBACK, TOOHIL, TAYLOR,

COOK-ARTIS, RAPP, DAVIS, MURT, BAKER, GINGRICH AND KAUFFMAN,

SEPTEMBER 9, 2016

REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 9, 2016

AN ACT

Establishing the Loan Forgiveness for Counselors Program within

the Pennsylvania Higher Education Assistance Agency and

providing for powers and duties of the Pennsylvania Higher

Education Assistance Agency.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Loan

Forgiveness for Counselors Act.

Section 2. Purpose.

The purpose of this act is to provide an incentive to

Pennsylvania students to pursue higher education and careers in

counseling to meet the delivery of quality addiction counseling

services in this Commonwealth.

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency." The Pennsylvania Higher Education Assistance

Agency.

"Counselor." An individual who provides individual and group

counseling for chemical dependency in a licensed drug and

alcohol treatment facility.

"Eligible applicant." A qualified individual who meets the

following criteria:

(1) Is a resident of this Commonwealth.

(2) Has successfully completed a two-year or four-year

academic degree or diploma or graduate level academic degree

or diploma at an accredited college or university.

(3) Has been hired as a full-time counselor by a

licensed alcohol and drug addiction treatment facility.

"Licensed alcohol and drug addiction treatment facility." An

alcohol or drug addiction treatment facility licensed by the

Department of Drug and Alcohol Programs to provide addiction

treatment services.

"Program." The Loan Forgiveness for Counselors Program

established by this act.

Section 4. Program.

(a) Establishment.--The Loan Forgiveness for Counselors

Program is established. The agency shall administer the program

for eligible applicants on a Statewide basis. The agency may

provide loan forgiveness as provided in subsection (b) for

recipients of loans who by contract with the agency agree to

provide addiction counseling services in this Commonwealth.

(b) Loan forgiveness.--Agency-administered, Federally

insured student loans for higher education provided to an

eligible applicant may be forgiven by the agency as follows:

(1) The agency may forgive a proportional part of the

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loan, not to exceed $35,000, if a loan recipient enters into

a contract with the agency that requires the recipient to

provide four years of full-time staff work. No more than

$8,750 shall be forgiven in any year.

(2) Loan forgiveness awards made under paragraph (1)

shall be forgiven over a period of four years at an annual

rate of 25% of the award and shall be made from funds

appropriated for this purpose.

(3) Payments shall be made in accordance with the

procedures established by the agency.

(4) The contract entered into with the agency under

paragraph (1) shall be considered a contract with the

Commonwealth and shall include the following terms:

(i) The recipient shall agree to be employed by a

licensed alcohol and drug addiction treatment facility

located within this Commonwealth for a period of not less

than four years in the field.

(ii) The recipient shall permit the agency to

determine compliance with the work requirement and all

other terms of the contract.

(iii) Upon the recipient's death or total or

permanent disability, the agency shall nullify the

service obligation of the recipient.

(iv) If the recipient is convicted of or pleads

guilty or no contest to a felony, the agency shall have

the authority to terminate the recipient's service in the

program and demand repayment of the amount of the loan as

of the date of the conviction.

(v) Loan recipients who fail to begin or complete

the obligations contracted for shall pay to the agency

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the amount of the loan received under the terms of the

contract under this section. Providing false information

or misrepresentation on an application or verification of

service shall be deemed a default. Determination as to

the time of the default shall be made by the agency.

(relating to personal earnings exempt from process), the agency

may seek garnishment of wages for the collection of damages

provided for in subsection (b)(4)(v).

Section 5. Tax applicability.

Loan forgiveness repayments received by a student shall not

be considered taxable income for purposes of Article III of the

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

of 1971.

Section 6. Annual report.

(a) Development of report.--The agency shall publish a

report by September 1 each year for the immediately preceding

fiscal year. The report shall include information regarding the

operation of the program, including:

(1) The number and amount of counselor loan forgiveness

contracts executed and renewed for eligible applicants.

(2) The number of defaulted counselor loan forgiveness

contracts reported by cause.

(3) The number of counselors participating in the

program reported by institution attended.

(4) The number and type of enforcement actions taken by

the agency.

(b) Submission.--The annual report shall be submitted to:

(1) The Governor.

(2) The chairperson and minority chairperson of the

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Appropriations Committee of the Senate.

(3) The chairperson and minority chairperson of the

Appropriations Committee of the House of Representatives.

(4) The chairperson and minority chairperson of the

Education Committee of the Senate.

(5) The chairperson and minority chairperson of the

Education Committee of the House of Representatives.

(6) The chairperson and minority chairperson of the

Public Health and Welfare Committee of the Senate.

(7) The chairperson and minority chairperson of the

Human Services Committee of the House of Representatives.

Section 7. Regulations.

The agency shall adopt regulations and procedures necessary

to carry out the purposes of this act.

Section 8. Funding.

Loan forgiveness repayments shall be made only to the extent

that funds are appropriated for that purpose and are sufficient

to cover administration of the program. The receipt of a loan

under this act shall not constitute an entitlement derived from

the Commonwealth or a claim on any funds of the Commonwealth.

Section 9. Effective date.

This act shall take effect in 90 days.

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